If $396 is invested at an interest rate of 13% per year and is compounded continuously, how much will the investment be worth in

Question

3 years ago

7

3 years?
$584.88
$583.66
$581.27
$268.11

2 answers:

deff fn [24] · Answer 1 · 2022-07-16T01:03:37+03:00

8 0

A=pe^(rt)
A=396×e^(0.13×3)
A=584.88

Vilka [71] · Answer 2 · 2022-07-15T23:31:29+03:00

Answer: First option is correct.

Step-by-step explanation:

Since we have given that

Amount invested = $396

Interest rate = 13% per year

Time = 3 years

We will use the "Exponential growth formula" i.e.

$A=Pe^{rt}$

Here,

P denotes Principle amount

r denoted rate of growth

t denotes number of years,

So, it becomes

$A=396e^{0.13\times 3}\\\\A=396e^{0.69}\\\\A=\$584.88$

Hence, First option is correct.